Oliver Wyman February 5, 2025
Leaders can save over $450 billion by 2035
Editor’s note: This article is part of a larger report, Healthcare’s $1 Trillion Challenge, which provides a roadmap for creating a more affordable and sustainable healthcare system. In this article, we offer solutions for generating $450 billion in savings over 10 years by reducing the administrative burden. Discover more chapters on lowering clinical labor costs and curbing the impact of growing drug costs.
While administration functions in the US healthcare system are constrained by extensive regulation and a multi-payer structure, much of the work is ripe for efficiency reform. Studies conducted over the past two decades show that administrative costs have grown at the same rate as clinical spending, accounting for 25%...
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